Changing BFSI regulations impact HCL Tech

Firm warns warned overall IT budgets are flat to down, but says European investments are beginning to pay off

HCL Tech is facing the impact of regulatory changes in the financial services sector, with several of them cutting across domains like investment and retail banking. The company said at the Indian Investor Conference, organised by Citi Global Markets that its exposure to the capital market segment is around 45% of the Financial Services vertical.

Wipro had pointed out that it was looking at these changes as a big opportunity for the company going forward.

HCL Tech has warned that overall IT budgets are flat to down. Clients are increasingly optimising run-the-business kind of work than investing in change-the-business kind of projects.

HCL Tech however, said that its investments made in Europe are beginning to pay off. European firms are expected to go in for higher outsourcing. The company expects deal flows in the real time bidding (RTB) space.

On its BPO services, HCL Tech management said that they have reduced share of voice based services from 80-90% to the verticals revenue to 40-50% as the segment was getting highly commoditized.

On the fall in currency HCL Tech said it will not be able to get the entire benefit of the fall as it had hedge some long term contracts, which will reduce gains.

Its management said that they will focus on execution of recent deal wins in the near term rather than aggressively bid for more deals.